Inside the Tata Steel Crisis: A Tipping Point for ArcelorMittal?
Tata Steel is exiting its UK operations after years of losses. But ArcelorMittal gets ~50% of its revenues from Europe, leveraging it to European steel.
Must-know: Why did the Indian rupee free-fall in 2013?
India’s current account deficit rose to 4.8% of GDP in 2012–2013, largely financed through hot money flows, and exceeded the government’s target level of 2.5% to 3% of GDP.
Why Investors Shouldn’t Fret over MT’s Negative Free Cash Flow
In this article, we’ll look at ArcelorMittal’s 1Q17 cash flow and leverage positions. As of the end of 1Q17, ArcelorMittal had net debt of $12.1 billion.
AK Steel: A Mainly Positive 2015 Outlook
AK Steel outlook Previously in this series, we discussed AK Steel (AKS) 1Q 2015 earnings. In this part, we’ll discuss its outlook for 2015. On April 30, AK Steel announced a price increase across all its flat rolled steel products. Before AK Steel, ArcelorMittal (MT) had also increased prices for its steel products. These price increases should […]
The Dynamics of May Steel Import Data
In May, US steel imports from South Korea and Russia fell 39% and 65%, respectively, in May. Steel imports from Japan and Brazil increased 20% and 11%, respectively.
China’s Real Estate Climate Index is Back from Its Lows
China’s real estate climate index was up 0.40 basis points to 93.03 in July. Prior to this gain, the index had fallen in every month but October since February 2014.
A Look at the Basic Materials Sector’s Dividend Yield
Of the various industries in the basic materials sector, integrated mining noted the highest dividend yield.
Chinese Steel Demand: Indicators Point to Slowing Growth Rates
In the previous part of this series, we looked at US steel demand indicators. In this part, we’ll look at Chinese steel demand indicators.
Can ArcelorMittal Succeed in India by Acquiring Essar Steel?
ArcelorMittal’s (MT) subsidiary ArcelorMittal India Private Limited has made a bid to acquire troubled Indian steelmaker Essar Steel.
Key Drivers of ArcelorMittal’s 4Q17 Revenues
ArcelorMittal (MT) reported revenues of $17.7 billion in 4Q17. The company posted revenues of $17.6 billion in 3Q17 and $14.1 billion in 4Q16.
Iron Ore Prices Could React to China’s Demand and Supply Dynamics
Generally, steelmaking raw materials and steel prices tend to move in tandem. Steel prices react to changes in raw material prices and vice versa.
Size Matters: Which Are the Top 10 Steel-Producing Companies?
In this series, we’ll look at the top ten companies in the global steel industry based on steel production, steel consumption, and steel imports.
What to Make of ArcelorMittal’s 1Q17 Performance
ArcelorMittal’s 1Q17 operating income rose sharply in 1Q17 compared to 4Q16. There are several other metrics we can look at to assess a company’s financial performance.
How China Could Affect the Steel Industry’s 4Q16 Outlook
Because China is the world’s largest steel consumer, it’s important for investors in companies such as U.S. Steel, ArcelorMittal, POSCO, and Gerdau to keep track of the Chinese steel industry.
How Brazil and Mining Added Flavor to ArcelorMittal’s 2Q Performance
In 2Q16, ArcelorMittal’s Mining segment generated an EBITDA of $163 million as compared to $98 million in the sequential quarter.
Global Steel Production Continued Its Losing Streak in May
Global steel production has fallen on a YoY (year-over-year) basis for 17 consecutive months. In May, production fell 0.09% YoY.
Why China Is Churning Out More Steel This Year
China produced 70.5 million metric tons of steel products in May 2016, according to data released by China’s National Bureau of Statistics.
Are There Any Relative Opportunities in the Steel Industry?
May is turning out to be a rough month for steel companies as concerns over the health of the world’s second-largest economy have resurfaced.
Why the Hot Rolled Steel Trade Case Might Not Be Very Effective
The US has imposed preliminary duties on three key steel product categories: hot rolled coil (or HRC), cold rolled coil (or CRC), and corrosion-resistant steel products.
What Does the Correction in Iron Ore Prices Mean for ArcelorMittal?
Integrated operations have been one of the factors driving steel companies’ recent performances. Iron ore and coal mining fall under steel companies’ upstream operations.
Fast Facts about TRAOX
TRAOX aims to grow capital by investing in “stocks issued by companies that are located in, or that have economic ties to, Asia (excluding Japan).”
Quantitative Metrics Signal PRASX as a Below-Average Fund
From a purely net asset value return standpoint, PRASX was a below-average performer for both the one-year period until February 29, 2016, and for 2015.
Must-Know Facts about PRASX
PRASX has existed since September 1990 and has an expense ratio of 0.94%. A minimum of $2,500 is required to invest in this fund.
Will China’s Capacity Cuts Be Enough to Restore Global Balance?
China plans to curtail its excess steel capacity. However, even if China actually cuts the excess steel capacity, it could be in a very gradual way.
Meet the Wells Fargo Asia Pacific Fund (WFAAX)
The Wells Fargo Asia Pacific Fund invests ~80% in Asia Pacific Basin equities, focusing on firms “with above-average sales and earnings” potential.
Bank of Korea Monetary Policy Is Expected to Remain Stable
The Bank of Korea maintained its interest rates at record lows of 1.5% in its December meeting. The central bank felt the eased policy stance would assist economic growth momentum.
FuelCell Energy Relies Heavily on Strategic Partners for Funding
FuelCell Energy (FCEL) relies heavily on its strategic partners for its financing needs through revolving credit facilities.
FuelCell Energy’s Service Revenues Down, Product Revenues Up
FuelCell Energy (FCEL) reported total revenues of $51.5 million for fiscal 4Q15 compared to $54.4 million for fiscal 4Q14.
AK Steel’s Raw Material Strategy: Different from Its Peers
AK Steel uses steel scrap as a raw material. Steel scrap prices have fallen steeply, which should help lower AK Steel’s unit production costs further.
Why Have Markets Ignored “Mega News” of China’s Aluminum Cuts?
Chinalco announced aluminum cuts of 530,000 tons in October. However, it will now be cutting production by only 150,000 tons.
No Early Respite for US Steel Producers as Prices Tank Globally
Chinese steel prices have continued to slide in November. Chinese steel mills lost $35 per ton on average in 3Q15.
How Does ArcelorMittal Compare to Its Industry Peers?
The price-to-book value ratios of ArcelorMittal, Vale, POSCO, Ternium, and Gerdau are 0.26x, 0.49x, 0.34x, 0.70x, and 0.28x, respectively.
ArcelorMittal’s Revenue and Income Fell in 3Q15
ArcelorMittal’s YTD price movement has been falling quarter-over-quarter in 2015. After the 3Q15 earnings report, the company fell by 0.55% to close at $5.43 per share.
Investor Update: Where Are US Steel Prices Headed in 2015?
Spot steel prices have inched up a bit after hitting their low in May. If the US steel demand stays strong and imports decline further, as they did in May, spot steel prices could see further upward movement.
Construction Spending Surges past the $1 Trillion Mark
May construction spending data, released on June 1, came in at a SAAR of $1.04 trillion. This is the second straight month where construction spending has passed $1 trillion SAAR.
China’s Real Estate Climate Index Touches Multi-Year Low in May
China’s real estate climate index has fallen every month but October since February 2014. The index dipped to 92.43 in May, a new multi-year low.
Construction Spending Hits the Highest Level since November 2008
The construction sector accounts for more than 40% of total steel consumption in the US. In April, construction spending increased 2.2% over the previous month.
China’s Real Estate Climate Index Drops in April
The decline in China’s real estate climate index is an indicator that Chinese construction activity has slowed down. China’s real estate sector is a key driver of global steel demand.
China’s Real Estate Climate Index Drops Further in April
The real estate climate index indicates that construction activity in China remains weak despite the government’s easing efforts.
Not Much Cheer from China’s April Steel Production Figures
Chinese steel production declined 0.7% in April on a year-over-year (or YoY) basis.
Is US Steel Consumption Headed for a Slowdown?
US steel consumption grew at 11.7% last year. However, for this year, the World Steel Association expects consumption to decline 0.4% over the previous year.
US Construction Spending Increased 2.2% in March
In the latest reading in March, total construction spending increased 2.2% on a YoY basis. However, it declined slightly from February.
Steel Scrap Prices Moved Sideways in April
Steel scrap prices tanked by more than 25% in February. This helped mini mills. They were at a competitive disadvantage due to the decline in iron ore and coal prices.
US Housing Starts Decline For 2 Consecutive Months
March housing starts declined 3.5% on a YoY basis. In February, housing starts dropped by 2.3%. The data was released on April 16. It was lower than expected.
Chinese Steel Demand Indicators Trend Lower in March
The construction sector accounts for more than half of China’s steel demand, as it uses steel products like rebars, decks, and joists.
Can India Lead the Global Steel Industry in the Next Decade?
Edwin Basson, the Director General of WSA, expects another 400 million tonnes of steel demand—led largely by India (EPI).